My Portfolio...

Posted by: Michael Mandel on December 01

Not that anyone really cares, but this morning I shifted my 401k portfolio more towards international equities and away from domestic equities.

Unfortunately the reallocation doesn’t take effect until the close of market today…

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Reader Comments

Kartik

December 1, 2006 05:17 PM

Michael,

But you are buying when the dollar is weak. You are getting fewer international equities for your buck at this point.

If you did this a year ago, you might have gotten a 30-50% return in the last 12 months. Hindsight is 20/20, of course.

But isn't it possible that the dollar may rise, pressuring your new International Equities?

dan

December 3, 2006 09:58 PM

with you on that Kartik. Anyone that had any interest going international would have done so at least a year ago.

Indirectly Mr. Mandel is telling us he wants to get out of US stocks due to possible recession, but doesn't believe in shifting his portfolio to intermediate bonds because he believes the yields are too low.

Someone really big out there sure is gambling that the US may have deflation, but none of our press talks about it.

Mike Mandel

December 4, 2006 08:50 AM

Kartik,

I'm effectively hedging against the possibility that the dollar may drop lower. Or, in economic terms, I'm hedging against the possibility that productivity gains may turn out to be overstated.

Patrick

December 4, 2006 09:01 AM

I plan to cash out my 401k and take it to the track. I figure my ability to pick the fastest dog is about equal to my ability to determine equities futures. - pjw

Brandon W

December 4, 2006 09:52 AM

I would say this is a smart move, even with the weak dollar. The accounting and financial sorcery happening on Wall St. and at the big banks make Enron look like a game of "Go Fish" being played with four-year-olds. However, the smoke machine is sputtering and the mirrors are cracking. We'll be lucky if all we see out of this is a recession; even such, U.S. equities won't be a smart place to have money and owning U.S. government debt will not be a very good idea either. The next three years are going to get very ugly and it may take a decade to recover. Gold might be a smart place to have money.

Mike Mandel

December 6, 2006 10:12 AM

Gold!? Not gold...

Brandon W

December 7, 2006 10:45 AM

Mike, what happens when the Dollar starts losing value as a reserve currency? The Euro might step in, but I suspect people will go back to metals of which gold is the star. I do believe, though, that gold is a 3-5+ year play. I shifted all my investments into gold and oil in July and am up 9.73% in the 5 month period, as of this morning. I'm holding back on further stock investments and saving to shift into real estate after the bottom hits.

Alex

December 19, 2006 04:52 AM

In my opinion the Dollar is going to los value becouse of the Economy in U.S.A.
I do not believe that the Gold is going up becouse there is no place to war in the world now - exept "Iran" - then the Gold will up.
In my opinion in the next years the "WOTER" will be in top stories.

Thank you for your interest. This blog is no longer active.

 

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Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.

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